P46 (Expat) Starter Notification

The P46 (Expat) Starter Notification is a new form. It is one of a number of In Year Movement messages sent from your payroll system to HMRC. It is used to send starter notification to HMRC of employees who are transferred to work in the UK.

The employees who fall under this category include:

  • Individuals working wholly or partly in the UK for a UK resident employer on assignment whilst remaining employed by an overseas employer.

  • Individuals assigned to work wholly or partly in the UK at a recognized branch of their overseas employer's business.

  • All individuals included by an employer within a dedicated expatriate scheme.

  • All individuals included by an employer within an expatriate modified PAYE scheme (the employer would typically be a multinational company).

Starting on April 6, 2009, it is mandatory for employers with 50 or more employees to send information to HMRC online on employees starting their employment who have been transferred to work in the United Kingdom. To help you meet this requirement, PeopleSoft Global Payroll for the United Kingdom has delivered an EDI message type, P46 (EXPAT).

The P46 EXP EDI message is generated for an employee seconded to work in the UK only. According to the specifications, when a person is seconded to work in the UK, they must be provided a P46 (Expats) form, which is used to capture relevant employee details.

Once the employee fills in the details, the employer section of this form has to be filled in and the form or EDI details must be sent to HMRC. The section completed by the employee determines the applicable tax code.

The standard P46 form only relies on statements A, B or C to determine the tax code. The new P46 (Expat) form also relies on an optional entry in the European Economic Area (EEA)/Commonwealth Citizen check box to determine the tax code.

If an employee enters X in the EEA/Commonwealth citizen box, employers must use the emergency tax code on a cumulative basis (which applies to Statement A) even if the employee has completed Statements B or C. PeopleSoft Global Payroll for the United Kingdom provides a page within the application to enroll an expatriate in the system and then generate the EDI message thereafter.

This message is also a part of In-year movements which have to be filed electronically starting April 6, 2009. The EDI message type complies with the new legislation.

Note:

We are delivering only the EDI format, not the P46 (Expat) form.

You should follow the general process used for existing In-year returns. Although it's a new form, it has been given version number 6.0 to be consistent with other In-year movements messages, which were activated in April 2009.